Slough Property Market in 2022
The UK property market continues to see incredible rises across multiple regions, driven by the Stamp Duty holiday, record low interest rates and new levels of demand for property. With no signs of slowing down, this activity has translated into forecasts suggesting growth of 9.0% by the end of 2021.
Looking more closely at the South East, the outlook is even more positive. Revised forecasts from Savills suggest that the region itself will see price growth of 9.0% by the end of 2021, before seeing a further 10% growth by 2025.
At the same time, the rental market is expected to see rises of 9% by 2025 according to JLL. For investors, this clearly highlights how property for sale in Slough could benefit from growth across both vital income streams.
It’s important to consider that the growth suggested in the Slough property price forecast (19%) over the next five years is significantly higher than Greater London, which is predicted to see 12.4% growth over the same period. With Slough property already much more affordable than London (£394,667 vs £648,942), the future growth and the current demand only strengthens the opportunities that property for sale in Slough could provide in 2022.
Slough Current Performance
As we entered the new year, the initial conclusion of the Stamp Duty holiday loomed and instilled a sense of urgency amongst prospective buyers. In turn, we saw record-breaking highs across the Rightmove website, estate agent enquiries boosted by over 10% and UK prices rising to over £300,000.
When rental enquiries surpassed 20% growth, the potential of commuter towns such as Slough was highlighted. Now, with tenants continuing to choose the South-East for more affordable living within commutable distance of the capital, annual rental growth across the region has seen 7.8% growth, driving Slough’s average rent to over £1,100 a month.
In contrast to the London market, property prices in Slough are also on an upward trajectory. In the past 12 months, the average price of Slough property for sale has increased by 1.31%, equivalent to £5,109. With the average property in Slough now worth over £390,000, Slough’s sales and rental markets remain thriving, regardless of the challenges presented by Covid-19 and Brexit.
While it could be argued that the Stamp Duty holiday is contributing to this impressive growth, Savills predictions for the coming years suggest that the rise of the South-East is here to stay. With an anticipated increase of 19% in South East property prices by 2025, along with an 8% rise in rental prices, Slough’s position as an emerging location and potential performance continues to support our Slough property price forecast.
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Slough Supply and Demand
Slough is in the midst of its biggest transformation to date, with a £3 billion regeneration scheme set to continue over the next 15 years. When combined with the forecasted completion of the Elizabeth Line in Q2 2022, the demand for property to rent in Slough is expected to reach new heights.
In 2019, Slough’s population sat comfortably at 149,539, but with tenants now moving up to 40 miles outside of the capital, this commuter town remains prime real estate for tenants. With the Elizabeth Line set to condense the commute to London to just 18 minutes, Slough is anticipating a population increase of nearly 10,000 by the end of 2021 alone.
Regeneration schemes are progressing quickly throughout the town in an attempt to meet this growing demand, which in turn, is increasing the number of jobs in Slough. In the coming years, the town will be a hub of unique amenities and employment opportunities, attracting executive residents searching for contemporary living and making Slough property for sale a potentially lucrative investment.
With this forecasted growth in both population and surrounding prices, investors will likely continue considering property for sale in Slough. The likes of New Eton House and The Metalworks are ideal for prospective investors – stylish apartments combining with the town’s promising amenities to create a quality Buy-to-Let opportunity ready to take advantage of the promising Slough property price forecast.
Slough Economic Forecast
Slough already has a thriving business district, with over 6,500 businesses across the town delivering a turnover of £9billion to the local economy. However, as Slough continues to grow, and the Elizabeth Line makes the town significantly more accessible, the number of workers in Slough is set to increase.
Slough is challenging London in many areas, especially in terms of gross added value (GVA) per worker. The UK average hovers around £57,000, whereas London reaches highs of £80,000. Thanks to Slough’s extensive business district, the town actually surpasses the capital with £82,000 GVA per worker. Not only does this emphasise the commercial potential of the town but it also accentuates the demand for property to rent in Slough.
With the vast amounts of investment that is being poured into the town over the next decade, alongside the council’s plans to stimulate mass economic growth, Slough’s economy will continue to thrive. While the regeneration is expected to see 10,000 more jobs in Slough alone, the Crossrail project will connect millions of people to the town. It’s this high level of demand that will no doubt drive the Slough property price forecast.
Although Reading is considered the ‘capital’ of Berkshire, the Slough property forecast, plus the anticipated growth in the town’s economy, could see this economic powerhouse become the leading town in Berkshire within the next 10 years.
Slough Past Performance
While 2020 was a challenge for all industries across the UK, the first half of the year saw businesses diversify and adapt to the unprecedented effects of Covid-19. By the end of 2020, many companies had become accustomed to national lockdowns and stringent restrictions, especially those within the property industry.
Q4 of last year was key to the success of the property market, reporting its fastest rate of rental growth in December since 2016. This 4.1% increase in rental growth was attributed to a significant lag in supply, caused by a combination of affordability and changing attitudes towards renting property.
Although this success had a ripple effect on the majority of regions across the UK, Slough’s property market has demonstrated consistent growth over the past three years, which has obviously impacted the Slough property price forecast. In 2018, property for sale in Slough averaged just £318,000, with year-on-year increases of around 4%-5%.
However, much like the rest of the UK, the Slough property market saw an unexpected number of sales in 2020, averaging £343,000, and with current prices already surpassing expectations, Slough is on track to surpass the forecasted average for 2022.
With rental yields in Slough fluctuating between 4% and 5% over the past 12 months, it is no surprise that Buy-to-Let in Slough made up 15% of the sales agreed in Q4 of last year. As an emerging location, more property investors are considering purchasing flats to rent in Slough as a long-term investment, with the potential for an additional 12% increase providing more incentive for Buy-to-Let investors.
Key Projects Driving Growth in Slough
Regeneration schemes have been driving Slough’s growth for many years, but with major projects continuing to rejuvenate the town, there is promise for Slough to become a UK hotspot. The extensive redevelopments span far and wide and include retail amenities, commercial spaces, leisure facilities and cultural quarters to meet the priorities of local residents.
The Slough Urban Renewal (SUR) scheme has formed a significant part of the town’s regeneration and includes a mixture of redevelopments and new additions. The council’s vision of delivering a well-balanced community, brimming with academic, business and leisure opportunities is at the centre of the project.
SUR has already successfully delivered an extensive, multi-million pound leisure strategy, which saw the rise of premium sporting facilities, from gyms, to ice rinks and swimming pools. Educational facilities also played an integral part in Slough’s regeneration, with primary schools being a particular concern amongst the council. To maximise learning opportunities for students, academic resources have been upgraded and additional classrooms have been constructed.
To meet the increasing housing demand in Slough, a four phase scheme has transformed several disused sites across the borough into housing estates, while future schemes will deliver vibrant apartments, multiple hotels, further housing and communal green spaces.
The regeneration of Queensmere Observatory Shopping Centre will complement the SUR project, with the mixed-use development aiming to transform 14 acres of the town centre. The ambitious plan includes the addition of smart workspaces, an expansion on Slough’s current cultural and civic quarter, a luxurious residential neighbourhood and improved pedestrian facilities. While Slough’s regeneration schemes intend to augment the profile of Slough, this particular plan also has a strong focus on stimulating long-lasting economic growth.
Arguably a catalyst for Slough’s recent popularity and regeneration schemes, the Crossrail project aims to introduce the Elizabeth Line to Slough in Q2 2022. The £17.8 billion railway will connect the likes of Slough and Reading to major destinations, including the UK’s biggest airport, Canary Wharf and London Paddington.
Thousands of people already commute to and from Slough, but with the Elizabeth Line providing direct trains to London every five minutes, this number is expected to continue climbing in the years to come. This increased accessibility will offer a plethora of new opportunities for both London and the South-East, especially surrounding employment – highlighting the demand for property to rent in Slough that would impact the town’s property market.